Just doing some back of the envelope figures on the Elko Coal...

Just doing some back of the envelope figures on the Elko Coal asset potential. All very speculative and a few years away but if coaking coal remains at these prices all very possible.

I will use 2 million tpa of coal production in the equations

Will assume we have 200 million shares on issue and 1 billion $ debt from the cost of building the Elko mine.
Will assume a $100 million pa interest cost on the debt.
Will assume a $90 per tonne production cost as predicted in the FEC report.


Coaking coal price Annual production Income Production cost Interest payment Profit / Loss

US $100 2mill tonne $200 mill $180 mill $100 mill loss $80 mill
150 '' $300 mill '' '' profit $20 mill
200 '' $400 mill '' '' '' $120 mill
250 '' $500 mill '' '' '' $220 mill
300 '' $600 mill '' '' '' $320 mill
350 '' $700 mill '' '' '' $420 mill

So on a very conservative PE of 5 @ coal price of $150 per tonne you get Elko valued at $100 million which equates to around 50c per share.

@ $200 a tonne you get the Coal asset valued @ $600 million which equates to about $3 per share.
At the current Coal price of US $300 per tonne we have a valuation around $ 1.6 billion which equates to $8 per share.
I know these figures seem crazy at the moment but Im just trying to point out the potential PAK has and thats not including Imagines potential which is impossible to put a price on.
Happy to be shot down in flames.
A lot needs to go our way but really if the coaking coal price can stay above $150 it seems like a no brainer.

GLTA

gmc